--- title: Key Terms in Defense Tech — CFIUS, CET, TRL, Dual-Use, and More | CET Ventures description: Plain-English definitions of the terms behind U.S.–Israel defense technology — CET, CFIUS, DIU, TRL, the valley of death, dual-use technology, adversarial capital, and more. --- [Skip to content](https://cet.vc/key-terms#main) [![CET Ventures](https://cet.vc/hs-fs/hubfs/raw_assets/public/cet-ventures-theme/images/cet-logo-white.png?width=160&height=52&name=cet-logo-white.png) ![CET Ventures](https://cet.vc/hs-fs/hubfs/raw_assets/public/cet-ventures-theme/images/cet-logo-purple.png?width=160&height=52&name=cet-logo-purple.png)](https://cet.vc/home?hsLang=en) - [About Us](https://cet.vc/about) - [Portfolio](https://cet.vc/portfolio) - [Team](https://cet.vc/team) - [The CET Sandbox](https://cet.vc/sandbox) - [Research](https://cet.vc/research) - [Media](https://cet.vc/media) - [CET 101](https://cet.vc/cet-101) - [Connect](https://cet.vc/connect) [← Back](https://cet.vc/cet-101?hsLang=en) Reference # Key terms, defined A plain-English guide to the terms that come up across our work — the framework, the institutions, and the language of how technology actually reaches the field. Critical and Emerging Technologies (CET) The advanced technology areas the U.S. government considers most vital to national security and economic competitiveness — including artificial intelligence and autonomy, quantum, biotechnology, advanced manufacturing and materials, directed energy, and hypersonics. The official list is maintained by the White House Office of Science and Technology Policy (OSTP) and guides federal R&D funding, export controls, and defense priorities. It was last updated in **August 2026**, in Appendix A of the *National Security Science & Technology Strategy*, which names fourteen CET areas. CET Ventures takes its name and strategy from this framework. CFIUS — Committee on Foreign Investment in the United States An interagency U.S. government body that reviews certain foreign investments in U.S. businesses for national-security risk. It can clear a transaction, require mitigation measures, or recommend that the President block or unwind it. For cross-border defense technology, anticipating CFIUS early is essential to a clean entry into the U.S. market. DIU — Defense Innovation Unit A U.S. Department of Defense organization created in 2015 to accelerate the adoption of commercial and dual-use technology for military missions. It uses faster, more flexible contracting — such as Other Transaction Authority — to move from problem statement to prototype to scaled production more quickly than traditional acquisition. TRL — Technology Readiness Level A 1–9 scale measuring how mature a technology is, from basic research (1) to proven in operation (9). CET Ventures focuses on TRL 5–8: technologies validated in a relevant or operational environment, past the lab and ready for real-world testing, validation, and adoption within defense programs — the point where capital and commercialization expertise have the most leverage. The “valley of death” The gap between a promising prototype and a funded program of record. Research funding has ended, but program dollars and end-user commitment have not yet arrived — and many capable technologies stall here. Bridging it requires aligning product roadmaps with mission needs and navigating procurement. Dual-use technology Technology with both civilian and military applications — for example, autonomy, advanced sensing, or AI. Dual-use companies can sell into commercial and defense markets at once, which widens their customer base and reduces reliance on government budget cycles. Adversarial capital Investment or funding that originates from — or is ultimately controlled by — foreign adversaries (for example, entities tied to China, Russia, or Iran). Even a minority stake can disqualify a company from sensitive U.S. defense work or trigger CFIUS scrutiny. CET Ventures and The CET Sandbox vet companies to ensure they are free from adversarial capital, so promising technology can enter the U.S. market cleanly. Program of record A defense capability that has been formally approved, funded, and budgeted within the U.S. acquisition system. Reaching a program of record means stable, multi-year government funding — the milestone that separates a successful pilot from a durable business. Defense Industrial Base (DIB) The network of companies, suppliers, and institutions that research, develop, and produce defense capabilities for the U.S. military. Entering the DIB means meeting its security, compliance, and procurement requirements. Non-recurring engineering (NRE) One-time engineering costs to design, develop, and adapt a product for a specific customer or program — common in defense, where a capability must be tailored to a mission. Converting NRE into a recurring program of record is how early defense revenue becomes durable revenue. ![](https://cet.vc/hubfs/raw_assets/public/cet-ventures-theme/images/imagery/iron-dome-air-defense.jpg) Newsletter ## Stay ahead of what's next Research reports, investment theses, and field notes from our team — covering the technologies, markets, and policy shifts shaping the future of critical and emerging technologies. Delivered to your inbox. No noise. By subscribing, you agree that CET Ventures will handle your information in accordance with our [Privacy Policy](https://cet.vc/privacy?hsLang=en). [![CET Ventures](https://cet.vc/hs-fs/hubfs/raw_assets/public/cet-ventures-theme/images/cet-logo-white.png?width=200&height=65&name=cet-logo-white.png) ![CET Ventures](https://cet.vc/hs-fs/hubfs/raw_assets/public/cet-ventures-theme/images/cet-logo-purple.png?width=200&height=65&name=cet-logo-purple.png)](https://cet.vc/home?hsLang=en) Ready for what's next. Investing at the intersection of Israeli innovation and validated U.S. demand. #### Explore - [About Us](https://cet.vc/about?hsLang=en) - [Portfolio](https://cet.vc/portfolio?hsLang=en) - [Team](https://cet.vc/team?hsLang=en) - [The CET Sandbox](https://cet.vc/sandbox?hsLang=en) - [Research](https://cet.vc/research?hsLang=en) - [Media](https://cet.vc/media?hsLang=en) - [CET 101](https://cet.vc/cet-101?hsLang=en) - [Connect](https://cet.vc/connect?hsLang=en) #### Connect - [LinkedIn](https://www.linkedin.com/company/cet-ventures/) - [invest@cet.vc](mailto:invest@cet.vc) - Tel Aviv, Israel CET Ventures is a venture capital firm. Nothing on this website constitutes an offer to sell or a solicitation of an offer to buy any security, or investment, legal, or tax advice. Information is provided for general informational purposes only. [Privacy Policy](https://cet.vc/privacy?hsLang=en) [Cookie Policy](https://cet.vc/cookie-policy?hsLang=en) [Terms of Use](https://cet.vc/terms?hsLang=en) [Privacy Requests](https://eu1.hs-data-privacy.com/request/U892OJKwYt7KMZ0rGEep9A) © 2026 CET Ventures LLC. All rights reserved. Confidential – For informational purposes only. Not an offer to sell or a solicitation of an offer to buy securities. Investments available to qualified investors only. We use essential cookies to make this site work. With your consent we may also use non-essential cookies for analytics. Non-essential cookies are off by default. Accept all Decline non-essential [Cookie Policy](https://cet.vc/cookie-policy?hsLang=en) [Privacy Policy](https://cet.vc/privacy?hsLang=en) ## Accessibility × Text size A− A A+ High contrast Underline links Reduce motion Reset all ```json { "@context" : "https://schema.org", "@id" : "https://cet.vc/#organization", "@type" : [ "Organization", "FinancialService" ], "address" : { "@type" : "PostalAddress", "addressCountry" : "IL", "addressLocality" : "Tel Aviv" }, "alternateName" : "CET VC", "areaServed" : [ "United States", "Israel" ], "description" : "CET Ventures is a cross-border venture capital firm investing in Israeli-led companies developing Critical and Emerging Technologies (CET) aligned with U.S. and allied national-security priorities, with a focus on companies that have a clear path to U.S. deployment and procurement.", "email" : "invest@cet.vc", "foundingDate" : "2026", "knowsAbout" : [ "Critical and Emerging Technologies", "Applied Artificial Intelligence", "Quantum and Battlefield Information Dominance", "Biomanufacturing", "Contested Logistics Technologies", "Scaled Directed Energy", "Scaled Hypersonics", "Defense technology investing", "Dual-use technology", "U.S.–Israel defense innovation", "Counter-UAS and counter-drone systems", "Venture capital" ], "legalName" : "CET Ventures", "logo" : { "@type" : "ImageObject", "url" : "//148579069.fs1.hubspotusercontent-eu1.net/hubfs/148579069/raw_assets/public/cet-ventures-theme/images/cet-logo-purple.png" }, "name" : "CET Ventures", "slogan" : "Where Israeli innovation meets U.S. demand.", "subOrganization" : { "@type" : "Organization", "description" : "The U.S.–Israel innovation hub on Critical and Emerging Technologies.", "name" : "The CET Sandbox", "url" : "https://cetsandbox.com" }, "url" : "https://cet.vc" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://cet.vc/#website", "@type" : "WebSite", "inLanguage" : "en", "name" : "CET Ventures", "publisher" : { "@id" : "https://cet.vc/#organization" }, "url" : "https://cet.vc" } ``` ```json { "@context" : "https://schema.org", "@type" : "DefinedTermSet", "hasDefinedTerm" : [ { "@type" : "DefinedTerm", "description" : "The advanced technology areas the U.S. government considers most vital to national security and economic competitiveness — including artificial intelligence and autonomy, quantum, biotechnology, advanced manufacturing and materials, directed energy, and hypersonics. The official list is maintained by the White House Office of Science and Technology Policy (OSTP) and guides federal R&D funding, export controls, and defense priorities. It was last updated in August 2026, in Appendix A of the National Security Science & Technology Strategy, which names fourteen CET areas. CET Ventures takes its name and strategy from this framework.", "name" : "Critical and Emerging Technologies (CET)", "url" : "https://cet.vc/key-terms#cet" }, { "@type" : "DefinedTerm", "description" : "An interagency U.S. government body that reviews certain foreign investments in U.S. businesses for national-security risk. It can clear a transaction, require mitigation measures, or recommend that the President block or unwind it. For cross-border defense technology, anticipating CFIUS early is essential to a clean entry into the U.S. market.", "name" : "CFIUS — Committee on Foreign Investment in the United States", "url" : "https://cet.vc/key-terms#cfius" }, { "@type" : "DefinedTerm", "description" : "A U.S. Department of Defense organization created in 2015 to accelerate the adoption of commercial and dual-use technology for military missions. It uses faster, more flexible contracting — such as Other Transaction Authority — to move from problem statement to prototype to scaled production more quickly than traditional acquisition.", "name" : "DIU — Defense Innovation Unit", "url" : "https://cet.vc/key-terms#diu" }, { "@type" : "DefinedTerm", "description" : "A 1–9 scale measuring how mature a technology is, from basic research (1) to proven in operation (9). CET Ventures focuses on TRL 5–8: technologies validated in a relevant or operational environment, past the lab and ready for real-world testing, validation, and adoption within defense programs — the point where capital and commercialization expertise have the most leverage.", "name" : "TRL — Technology Readiness Level", "url" : "https://cet.vc/key-terms#trl" }, { "@type" : "DefinedTerm", "description" : "The gap between a promising prototype and a funded program of record. Research funding has ended, but program dollars and end-user commitment have not yet arrived — and many capable technologies stall here. Bridging it requires aligning product roadmaps with mission needs and navigating procurement.", "name" : "The “valley of death”", "url" : "https://cet.vc/key-terms#valley-of-death" }, { "@type" : "DefinedTerm", "description" : "Technology with both civilian and military applications — for example, autonomy, advanced sensing, or AI. Dual-use companies can sell into commercial and defense markets at once, which widens their customer base and reduces reliance on government budget cycles.", "name" : "Dual-use technology", "url" : "https://cet.vc/key-terms#dual-use" }, { "@type" : "DefinedTerm", "description" : "Investment or funding that originates from — or is ultimately controlled by — foreign adversaries (for example, entities tied to China, Russia, or Iran). Even a minority stake can disqualify a company from sensitive U.S. defense work or trigger CFIUS scrutiny. CET Ventures and The CET Sandbox vet companies to ensure they are free from adversarial capital, so promising technology can enter the U.S. market cleanly.", "name" : "Adversarial capital", "url" : "https://cet.vc/key-terms#adversarial-capital" }, { "@type" : "DefinedTerm", "description" : "A defense capability that has been formally approved, funded, and budgeted within the U.S. acquisition system. Reaching a program of record means stable, multi-year government funding — the milestone that separates a successful pilot from a durable business.", "name" : "Program of record", "url" : "https://cet.vc/key-terms#program-of-record" }, { "@type" : "DefinedTerm", "description" : "The network of companies, suppliers, and institutions that research, develop, and produce defense capabilities for the U.S. military. Entering the DIB means meeting its security, compliance, and procurement requirements.", "name" : "Defense Industrial Base (DIB)", "url" : "https://cet.vc/key-terms#dib" }, { "@type" : "DefinedTerm", "description" : "One-time engineering costs to design, develop, and adapt a product for a specific customer or program — common in defense, where a capability must be tailored to a mission. Converting NRE into a recurring program of record is how early defense revenue becomes durable revenue.", "name" : "Non-recurring engineering (NRE)", "url" : "https://cet.vc/key-terms#nre" } ], "name" : "CET Ventures — Key Terms", "url" : "https://cet.vc/key-terms" } ```